National Pension Crisis: Call to Action

A pressing concern affecting millions of American seniors and their families is the disintegrating pension system, where hundreds of major companies have reduced or eliminated guaranteed retirement plans, leaving workers without the lifeblood they depend on to supplement their Social Security benefits. A crisis forum at the National Press Club, sponsored by the Claude Pepper Foundation and Center, will bring together pension loss victims, policy experts, and thought leaders to propose changes in company processes, judicial rulings, and federal legislation to protect workers' earned benefits.

Key Takeaways:

• Over 101 million active American workers have a private pension plan, which is the lifeblood for most Americans supplementing the near poverty of pure Social Security.
• Hundreds of major companies, including United Airlines, GM, IBM, Verizon, Sears, Hewlett Packard, Polaroid, AT&T, and Enron, have reduced or eliminated guaranteed retirement plans.
• The pension crisis threatens the financial stability of nearly all American seniors and their families, as well as younger workers.
• Proposed changes include reforms in company processes, judicial rulings, and federal legislation to guarantee that workers are protected from losing earned benefits.
• Both the House and Senate are working on pension reform bills, with the goal of protecting workers' rights and earnings.
• David Macpherson, Director of the Pepper Institute on Aging and Public Policy, Claude Pepper Center, Florida State University, will provide expertise on the pension crisis and its impact on seniors.
• Karen Friedman, Policy Director of the Pension Rights Center, Washington, DC, will discuss the need for changes in judicial rulings and federal legislation to protect workers' earned benefits.
• William Arnone, Human Capital Practice Partner for Ernst and Young, New York City, and co-author of Ernst and Young's Retirement Planning Guide, will provide insights on company processes and pension reform.
• Thomas Spulak, Chair of the Pepper Foundation and former Staff Director of the House Rules Committee under Chairman Pepper, will open the forum.
• Bob Weiner, former Chief of Staff of the House Aging Committee under Chairman Pepper, and author of a piece on pension reform, will convene and moderate the event.

Statistics:

• 142.6 million active American workers are affected by the pension crisis.
• 101 million active American workers have a private pension plan.
• Hundreds of major companies have reduced or eliminated guaranteed retirement plans, threatening the lifeblood of American seniors and their families.
• Pension reform bills are being considered in the House and Senate to protect workers' rights and earnings.

Sources:

• PRNewswire, "Disintegrating Pensions National Crisis: Call to Action" (Feb 24).
• Miami Herald, "Pension Reform: Protect workers from losing earned benefits" (Dec 29).